Yes Bank scales record high as board approves foray in mutual fund business

Yes Bank gained 3.83% to Rs 816.95 at 11:21 IST on BSE after the bank's board approved the proposal to seek approvals from the Regulators for setting up Asset Management Business and Primary Dealership business.

Meanwhile, the S&P BSE Sensex was up 525.79 points or 1.92% at 27,872.61

On BSE, so far 2.92 lakh shares were traded in the counter as against average daily volume of 2.66 lakh shares in the past one quarter.

The stock hit a record high of Rs 822.35 in intraday trade today, 15 January 2015. The stock hit a low of Rs 807 so far during the day. The stock had hit a 52-week low of Rs 292.10 on 4 February 2014.

The large-cap bank has equity capital of Rs 417.55 crore. Face value per share is Rs 10.

Yes Bank before market hours today, 15 January 2015 said that the board of directors of the bank at its meeting held yesterday, 14 January 2015, approved the proposal to seek approvals from the Regulators for setting up Asset Management Business and Primary Dealership business. The decision was considering the bank has established a distribution network of 600 branches as of 31 December 2014 across metro, urban, semi-urban and rural centers with a pan India distribution presence spreading across all states and union territories of the country.

With a view to complete the overall bouquet of financial products to its customer franchise, the bank plans to set up an Asset Management Company (AMC), primarily to channelize the savings of retail investors in equity and debt capital markets, Yes Bank said. This will complement the bank's retail liabilities strategy, strengthen multi-product customer engagement and also allow the bank to leverage its distribution network for customer acquisition, Yes Bank said. The bank will simplify and integrate "manufacturing to distribution" of equity and debt investment products for all its customers, it added.

Yes Bank said that the AMC will complement Yes Securities brokerage business which has now stabilized its operations and is rapidly growing its business footprint. The AMC will also complement the bank's retail strategy and help in leveraging existing infrastructure to provide the necessary retail thrust. This will allow the bank to build a holistic wealth management proposition for its customers and enable the bank to strengthen traction witnessed in building retail market share on the back of its savings account proposition, the bank said.

Yes Bank's net profit surged 30% to Rs 540.29 crore on 20.9% growth in total income to Rs 3508.47 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced during market hours yesterday, 14 January 2015, when the stock rose 0.61% to settle at Rs 786.80.

Yes Bank's total branch and ATM network stood at 600 branches and 1,156 ATMs. The bank added 83 branches over 31 December 2013.

Yes Bank is one of the leading private sector banks in India.

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